Do federal government retirees need Medicare Part B?Asked by: Phyllis Greenholt | Last update: February 11, 2022
Score: 4.3/5 (55 votes)
Most people who have retiree coverage must enroll in Medicare Part A and Part B when first eligible. ... As a federal retiree, if you don't enroll in Medicare, your FEHB plan will act as your primary insurer and won't pay less because you qualify for Medicare.
Do most federal retirees enroll in Medicare Part B?
About 70% of federal retirees enroll in Part B, which means paying two premiums and in essence two duplicative insurance programs. A portion of the retirees that join Part B might do so as a hedge against the elimination of FEHB retiree benefits.
Do federal employees have to take Medicare Part B?
You don't have to take Medicare Part B coverage if you don't want it, and your Federal Employee Health Benefits (FEHB) plan can't require you to take it. However, there are some advantages to enrolling in Part B: ... If you want to join a Medicare Advantage plan, you must be enrolled in Medicare Part A and Part B.
Are federal retirees automatically enrolled in Medicare?
If you are retired and receiving Social Security you will automatically be enrolled in Part A and B and should receive your Medicare card three months before your 65th birthday.
Do feds need Medicare when they already have FEHB?
Do Federal Retirees Need Medicare Part D
The answer: yes! FEHB coverage is comparable to Medicare coverage. Therefore, beneficiaries in the federal program may delay joining a Part D plan; likewise, they're exempt from any Part D late enrollment penalties.
FEHB and Medicare for Retirees | Should You Sign up for Part B?
Can you have Medicare Advantage and FEHB?
When you enroll in a Medicare Advantage plan, you may not need FEHB coverage because the Medicare Advantage plan will provide you with many of the same benefits. You should review the Medicare Advantage Plan benefits carefully before making a decision to suspend or cancel FEHB coverage.
Can federal retirees get Medicare Advantage plans?
Federal retirees have Medicare Advantage (MA) plans to consider joining. Our analysis shows that some of these offerings are an outstanding value.
How do you keep FEHB in retirement?
To continue your health benefits enrollment into retirement, you must: (1) have retired on an immediate annuity (that is, an annuity which begins to accrue no later than one month after the date of your final separation); and (2) have been continuously enrolled (or covered as a family member) in any FEHB Program plan ( ...
Does FEHB continue after retirement?
Unfortunately, federal employees do not receive free health insurance upon retirement. However, federal employees can keep their current federal employee health benefits (FEHB) plan upon retirement. ... The government pays the remainder of the retiree's premium at the same rate as they do for current employees.
Can you drop Medicare Part B anytime?
Yes, you can opt out of Part B. (But make sure that your new employer insurance is “primary” to Medicare. ... In the event that you lose this insurance in the future, you won't incur a late penalty as long as you sign up for Part B again within eight months of retiring or otherwise stopping work.
How much does FEHB cost in retirement?
FERS retirees must elect either 50% or 25% survivors annuity for your spouse to be eligible for FEHB coverage in retirement after the annuitant's death. The 50% election will cost you 10% of your full annuity and the 25% survivor annuity election will cost you 5% of your full annuity in retirement.
Is Medicare Part B federal or state?
More than 64 percent of those people were covered by Original Medicare — Medicare Part A and Part B. It's managed by the federal government and is the same from state to state.
Can I cancel Medicare B?
You can voluntarily terminate your Medicare Part B (medical insurance). It is a serious decision. ... You'll need to have a personal interview with Social Security before you can terminate your Medicare Part B coverage. To schedule your interview, call the SSA or your local Social Security office.
Can I keep my FEHB after age 65?
Your FEHB coverage will continue whether or not you enroll in Medicare. If you can get premium-free Part A coverage, we advise you to enroll in it. Most Federal employees and annuitants are entitled to Medicare Part A at age 65 without cost. ... If you don't enroll in Medicare, your FEHB plan will pay benefits in full.
Why is FEHB so expensive?
There are a couple of reasons why having FEHB is so rare and valuable. ... It is difficult for many companies to compete with the sheer size and cost savings of the FEHB program, not to mention the fact that federal employees only have to cover about 28% of the premium with the government picking up the rest.
Is Medicare Advantage better than FEHB?
Most MA plans are comparable to FEHB plans in hospital and medical benefits, but the prescription drug benefits will not be as good as in the FEHB program because the plans have a “coverage gap” where you are responsible for all or most drug costs until you reach a catastrophic limit.
Do federal employees get health benefits for life?
Unless you waive coverage, almost all full and part-time federal employees are automatically enrolled in a life insurance plan equal to their salaries. As with health insurance, employees do not have to prove insurability, so no physical is required.
Does Medicare coverage start the month you turn 65?
The date your coverage starts depends on which month you sign up during your Initial Enrollment Period. ... If you qualify for Premium-free Part A: Your Part A coverage starts the month you turn 65. (If your birthday is on the first of the month, coverage starts the month before you turn 65.)
Is FEHB a good deal?
FEHB is easily one of the best group health insurance programs available. It is the largest employer-sponsored group health plan in the world. ... Costs for smaller group plans can easily cost more than twice as much (for less coverage) than is premium costs through FEHB.
Is FEHB better than TriCare?
TriCare on average is far less expensive than traditional FEHB coverage. This is often why Federal employees who are eligible to participate in TriCare choose to keep that coverage in place as their primary insurer. You can enroll in TriCare and suspend your FEHB options.
Is FERS pension taxed?
Federal employees sometimes forget that their federal retirement pension *is* taxable. Your CSRS or FERS Pension will be taxed at ordinary income tax rates. Now – you will get your contributions back tax-free (since you already paid taxes on the money when it was taken out of your pay check).
Does OPM deduct Medicare Part B premiums?
You can request to have your Part B premiums deducted from your Office of Personnel Management (OPM) annuity as long as you're NOT entitled to Social Security or RRB benefits. Call us at 1-800-MEDICARE to make your request. For questions about your bill, call the RRB at 1-877-772-5772.
Can Medicare premiums be deducted from federal pension?
Frequently Asked Questions Retirement
If you are not receiving social security benefits, you can have Medicare premiums withheld from your annuity payments. ... We cannot withhold premiums based on your direct request or even one from the Social Security Administration.
What is the difference between FEHB and Medicare?
your FEHB plan is the primary payer of health benefits expenses and Medicare is the secondary payer if you are employed in the federal service; Medicare is the primary payer and FEHB is the secondary payer if you are not employed in the federal service.
What happens if I don't want Medicare Part B?
If you didn't get Part B when you're first eligible, your monthly premium may go up 10% for each 12-month period you could've had Part B, but didn't sign up. In most cases, you'll have to pay this penalty each time you pay your premiums, for as long as you have Part B.